The GATE Grind

GATE 2019 ME (ME1) – Question 27

Production Planning and Control · Forecasting models · 1 mark · Multiple choice

Monthly demand is January 450, February 440, March 460, April 510, May 520, June 495, July 475 and August 560. Using a simple three-month moving average, forecast September demand.

  1. 490
  2. 510
  3. 530
  4. 536.67

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Correct answer: (B) 510

Explanation

Use the last three observed months: June 495, July 475 and August 560. Their mean is $(495+475+560)/3=510$. **B**.